ZAKIR HUSAIN DELHI COLLEGE

“CASHLESS INDIA”

A PROJECT SUBMITTED IN PARTIAL FULFILMENT

OF THE REQUIREMENT FOR DEGREE OF B.COM (H)
UNIVERSITY OF DELHI

BY
.......
HARSH GUPTA
COLLEGE ROLL NO-14/7
EXAMINATION ROLL NO-14085204055
SECTION- “A”

B.COM (H)

UNDER THE SUPERVISION OF

DR. ABDUL WAHID FAROOQI

DEPTT. OF COMMERCE

Z.H.D.C. (UNIVERSITY OF DELHI)

SESSION 2016-17

1
 DECLARATION

I hereby declare that the project entitled “cashless India” has not previously
formed the basis for the award of any degree, diploma or other similar titles for
recognition. This work embodies the result of my 0riginal work and reflects an
advancement in the area.

DATE- HARSH GUPTA

PLACE- B.COM (H) SEC-“A”

2
 CERTIFICATE

This is to certify that project entitled “Cashless India” submitted

to Zakir Husain Delhi College (University of Delhi) in partial
fulfilment of requirement of the course of B.com. (h) VIth
semester, embodies a faithful record of original work carried out
by Mr. Harsh Gupta under my supervision and guidance and
that this work has not been submitted in part or full for any
degree or diploma in any other university.

DR. A.W. FAROOQI

SUPERVISOR

3
 ACKNOWLEDGEMENT

I wish to express my sincere to MR. A. W. FAROOQI, my

mentor, to carry out this research project on Cashless India.
I sincerely thank him for his guidance and encouragement for
carrying out this project.
And my friends for motivating and helping me throughout the
project. It would not have been possible without them.

4
CONTENTS PAGE NO.

1. Introduction
1.1 Current monetary system & drawback 6
1.2 Problems with current economy & digital economy 7
1.3 Ways of paying money in cashless economy 7-11

2. Government initiative 12-13

3. Benefits & challenges of cashless economy

3.1 benefits of cashless economy 14-17
3.2 challenges of cashless economy 17-20

4. Demonetization
4.1 cashless economy boosted by demonetization 21
4.2 impact on peddler & hawkers 21-23
5. Research objective 24
6. Research methodology 25
7. Data analysis & interpretation 26-38
8. Findings & suggestion
8.1 Summary of findings 39
8.2 Suggestions 40
9. Conclusion 42-44
10. Bibliography 45
11. Annexure
11.1 Questionnaire 46-48

5
1.INTRODUCTION
1.1The Current Monetary System and It’s Drawbacks
Most economies in the world have a central bank or an authority that reserves the right
to manufacture paper and metal currency and is responsible to assure the bearer of
its assigned value. While this might come across as a fairly easily understandable
system, there is a lot more that goes into ‘money creation’. The amount of cash in an
economy at any instant is guided by the market forces of demand and supply and the
central authority in charge regulates the flow of cash into (or out of) the market.

Cash, however, is only the physical instantiation of money. The reason why cash has
been a popular form of exchange for such a long time is because of the tangibility that
it provides to the entire idea of money. But does money really need to have a physical
form that people could identify with?

Perhaps not.

The reason being that money in the form of cash has more that it takes away from us
than it gives us. Outlined here are some major drawbacks of cash-

 At an individual level, cash is inconvenient to carry and manage. It

cannot be traced or insured as cash once lost or stolen cannot be
recovered.
 Cash is expensive to print, inspect, move, store and guard.
 Counterfeiting is always going to be a problem as long as paper currency
exists.
 Hand-to-hand currency is favoured by criminals as it does not leave a
paper trail.
 Cash transactions are not trackable in nature, thus providing no
transparency. This leads to corrupt practices and financial crimes such
as excessive money laundering.
 Monitoring of tax compliance is difficult for the Government.
 High cash usage results in a substantial amount of money outside the
formal economy, thus stunting the effectiveness of policies aimed at
managing inflation rates.
 From a global perspective, the economic growth imperative inherent in
the current monetary system plays a major role behind global warming
and other environmental crises.

In wake of the issues highlighted above, some governments are already viewing the
use of cash in a negative light. In fact, according to the U.S. Government, cash
payments are now thought of as ‘suspicious’ activity that needs to be reported to the
authorities.

6
1.2Problems with Current Indian Economy:

• The modern Indian Economy is quiet fragile and unstable.

• A lot of Black Money exist in our Economy. The amount is greater than what
are pending loans on India.

• So much taxes exist that it is tough to even name them all.

The country of 100 crores is run by the taxes of just 3 crores. This means that the
taxation is improper

A Digital Economy:-

• A Digital Economy is one where purchases and transactions are done mainly
by electronic means and cash is seldom used.

• As Cash is seldom used, it can also be called as a “Cashless Economy”.

This idea is new coming and only exists in a few countries

1.3 WAYS OF PAYING MONEY-

Prime Minister Narendra Modi made a strong push for a ‘cashless economy’ in his
monthly ‘Mann ki Baat’ radio address. A day later, his office publicised a number of
alternative payment modes in a series of tweets titled ‘My mobile. My Bank. My
wallet: Transactions without cash’.

Here are the five alternatives that the PMO tweeted about:

1. Unified Payments Interface (UPI)

“It’s as easy as sending a message from your phone! Every bank has its own mobile
app – so it’s now possible to transact on your smart phone,”

How:
Register your mobile number at your bank or ATM
Download the UPI app on your mobile

7
Make your unique ID
Set your UPI PIN

Advantage:
Transactions can be carried out from any location, between any two individuals
No need to pre-add beneficiary

BHIM
BHIM (Bharat Interface for Money - Bhim App) is a Mobile App developed
by National Payments Corporation of India (NPCI), based on the Unified Payment
Interface (UPI). It was launched by Narendra Modi, the Prime Minister of India, at a
Digi Dhan programme at Talkatora Stadium in New Delhi on 30 December 2016. It
has been named after Bhim Rao Ambedkar and is intended to facilitate e-payments
directly through banks and as part of the 2016 Indian banknote demonetization and
drive towards cashless transactions.
This UPI app supports all Indian banks which use that platform, which is built over
the Immediate Payment Service infrastructure and allows the user to instantly
transfer money between the bank accounts of any two parties.It can be used on all
mobile devices.

Benefits

BHIM allow users to send or receive money to other UPI payment addresses or
scanning QR code or account number with IFSC code or MMID (Mobile Money
Identifier) Code to users who do not have a UPI-based bank account.
BHIM allows users to check current balance in their bank accounts and to choose
which bank account to use for conducting transactions, although only one can be
active at any time.
Users can create their own QR code for a fixed amount of money, which is helpful in
merchant — seller — buyer transactions. They can also have more than one
payment address.
If the 12-digit Aadhaar is listed as a payment ID on the BHIM app will not require any
biometric authentication or prior registration with the bank or Unified Payment
Interface (UPI).
During Union Budget 2017, Union Finance minister Arun Jaitley said that
Government will launch two new scheme to promote the use of the BHIM app. One
will be referral payments for individuals, and the other will cashback for merchants
who accept payments from BHIM.
During the Union Budget 2017, Union Finance minister Arun Jaitley said that BHIM is
currently being used by over 125 lakh Indian citizens.

8
2. e-Wallet
“It’s as easy as sending photos through your phone! Through the e-Wallet, money
transactions are possible with mobile or computer,” said the PMO tweet.

How:
Choose an e-wallet service of your convenience and download the app
Register your mobile number
Link this with your debit card, credit card or net banking

Advantages:
Many options available, from private players to wallets offered by banks and even
telephone companies
Most wallet services allow recharges of denominations of the consumer’s choice

PAYTM at HIGH

• Paytm, India’s largest mobile payments company and an e-commerce

platform, has said that post demonetization of Rs.500 and Rs.1000 notes, it
has touched a record five million transactions a day, against Rs.2.5-3 million
transactions earlier.

• Paytm has touched a record 5 million transactions a day and is on the way to
process over Rs.24,000 crore.

• The company said it had registered a 700 per cent increase in overall traffic
and 1,000 per cent growth in the amount of money added to the Paytm
accounts over the last couple of weeks.

• The number of app downloads went up 300 per cent, while the number of
transactions per user went up from 3 transactions to over 18 transactions in a
week

• Over 8,50,000 offline merchants across India accept Paytm.

• The highest increase in usage was seen in Chennai, followed by Ahmedabad,

Hyderabad, Kolkata and Bangalore.

9
3. Cards, PoS
These are pretty common in urban areas. PoS stands for ‘point of sale’. These are
the payments you can make using your debit cards or credit cards .

How:
Get a debit card against your bank account, or apply for a credit card
Set and remember your PIN
Swipe your card, enter the amount to be paid, punch in your PIN

Advantages:
Debit cards come almost automatically with bank accounts
Cards can be used for withdrawals and deposits at ATMs across the country, and
even abroad
Cards can also be used for online transactions

4. Aadhaar Enabled Payment System (AEPS)

“Why rely on your bank, when you can bank on Aadhaar! Now link your Aadhaar
card with your bank account,” read the PMO tweet.

10
How:
Link your Aadhaar card with your bank account
Remember your Aadhaar number or carry a copy of your card
Remember the bank in which you have the account which has been linked to your
Aadhaar card
Transactions to be authenticated using fingerprint recorded for Aadhaar biometrics

Advantages:
Balance inquiry, cash withdrawals, cash deposits and Aadhaar-to-Aadhaar fund
transfers
No extra registrations needed
Could be useful in rural areas, with transaction carried out by banking
correspondents

5. Unstructured Supplementary Service Data (USSD)

This allows fund transfers through the interface of any mobile phone.

How:
Link your mobile number to your bank account
Dial *99# from your phone
Identify your bank by entering the first three letters or the first four letters of your
branch’s IFSC code
In the menu that pops up, chose ‘Fund Transfer-MMID’
Enter the mobile phone number and MMID of the recipient
Enter the transfer amount and your MPIN, followed by a space and the last four
digits of your account number

Advantages:
No smartphone required
No mobile internet connection needed

11
2. GOVERNMENT INITIATIVES

Highlights of the incentives announced –

1) Discount on fuel Purchase
0.75% discount on buying petrol and diesel through debit cards, credit cards and e-
wallets.

2) PoS Machines in Village:

Currently, there are 6.5 lakh Point of Sale (PoS) machines across the country. Villages
with a population of up to 10,000 will get 2 Point of Sale machines free of cost and that
one lakh villages will be selected for this scheme of availing free Point of Sales
machine.

3) Ceiling on Monthly Charge on PoS Machines

Monthly rental for PoS terminals/Micro ATMs/mobile POS given by banks will be
capped at Rs 100. This is aimed at bringing small merchants on board the digital
payment eco-system.

4) Discount on Suburban Railway tickets:

Discount of 0.50% for purchase of Sub-urban railway monthly and seasonal tickets
from 1 January 2017

5) Insurance Cover for Rail Travellers:

Railways will provide free accident insurance coverage of Rs. 10 Lakhs for passengers
who are booking the tickets online. Currently, 58 percent passengers buy tickets online

6) Discount on Rail Utilities:

Railways will also offer 5 per cent discount on digital payments for accommodation,
catering and retiring room bookings at railway stations

7) Service Tax Exemption:

No service tax will be charged on credit and debit card payments on transactions of
up to Rs. 2,000 in a single transaction.

12
8) Discount on Highway Toll:
For online payment of toll on national highways using RFID card/fast tags a discount
of 10 per cent will be offered.

9) Discount on Insurance Premiums:

Customers paying payments through online gateways of public sector general
insurance companies will be given a 10 percent discount.

The discount will be 8 percent for premium of new life policies made through the portal
of Life Insurance Corporation (LIC)

10) Rupay Cards to Farmers:

Rural Regional Banks and Co-operative Banks to issue ‘RupayKisan Cards’ to 4.32
CroreKisan Credit Card Holders. This will benefit farmers of 1 Lakh village covering a
total population of nearly 75 Crore who will have facility to transact cashlessly in their
villages for their agri needs.

And lastly,

11) Public dealings with government departments and PSUs through digital mode will
be free of transaction fee and MDR charges.

13
3. BENIFITS & DRAWBACKS OF SHIFTING TO A CASHLESS
ECONOMY
3.1 BENEFITS

Advantages of digital transactions

1. Convenience

The ease of conducting financial transactions is probably the biggest motivator to go

digital. You will no longer need to carry wads of cash, plastic cards, or even queue
up for ATM withdrawals. It's also a safer and easier spending option when you are
travelling. "The benefits are enormous if you leave out the low-income group, which
will face a huge challenge," says Kartik Jhaveri, Director, Transcend Consulting. "For
the rest of the country, it is constructive and simple. It will be especially useful in
case of emergencies, say, in hospitals," he says.

Adds Jayant Pai, Head, Marketing, PPFAS Mutual Fund: "You have the freedom to
transact whenever and wherever you want. You don't have to be physically present
to conduct a transaction or be forced to do so only during office hours."

2. Discounts

The recent waiver of service tax on card transactions up to Rs 2,000 is one of the
incentives provided by the government to promote digital transactions. This has been
followed by a series of cuts and freebies. It's a good time to increase your savings if
you take advantage of these. For instance, 0.75% discount on digital purchase of
fuel means that the petrol price in Delhi at Rs 63.47 per litre can be brought down to
Rs 62.99l with digital payment. Similarly, saving on rail tickets, highway toll, or
purchase of insurance can help cut your costs.

Add to these the cash back offers and discounts offered by mobile wallets

14
like Paytm, as well as the reward points and loyalty benefits on existing credit and
store cards, and it could help improve your cash flow marginally.

GO DIGITAL, GET DISCOUNTS

Service tax: Waiver of service tax of 15% on digital transactions up to `2,000.

Fuel: 0.75% discount on digital purchase of fuel through credit/debit cards, e-wallets
or mobile wallets.

Rail tickets: 0.5% discount on monthly and seasonal suburban railway tickets from 1
January 2017. Online rail ticket buyers get up to `10 lakh free accident insurance
too.

Rail catering: 5% discount on digital payments for railway catering, accommodation,

retiring rooms, etc.

Highway toll: 10% discount on NH toll payment via RFID or fast-tags in 2016-17.

Insurance: 10% discount by government general insurers on premium paid online

via their portals. 8% discount on new LIC policies bought online via its site. POS: Rs
100 a month is the maximum rent that PSU banks can charge for PoS terminals.
Rupay: Kisan credit card holders to get RuPayKisan cards.

3. Tracking spends

"If all transactions are on record, it will be very easy for people to keep track of their
spending. It will also help while filing income tax returns and, in case of a scrutiny,
people will find it easy to explain their spends," says Manoj Nagpal, CEO, Outlook
Asia Capital. "Besides the tax, it will have a good impact on budgeting," says Pai.

15
It may not seem like much of an advantage, but being cashless makes it easy to
ward off borrowers. Another plus is that you can pay the exact amount without
worrying about not having change or getting it back from shopkeepers . .

4. Budget discipline

The written record will help you keep tabs on your spending and this will result in
better budgeting. "Various apps and tools will help people analyse their spending
patterns and throw up good insights over a couple of years," says Jhaveri. Controlled
spending could also result in higher investing.

If the same amount of cash does not flow back into circulation and people continue
to use mobile wallets and cards, it is also likely to bring down the latte factor. This
means that the `10 you spent on candy or chips, or that regular cup of coffee office is
likely to take a hit since you will be short of loose change and smaller currency
notes. There's a lesser chance of budgetary leaks and unaccounted for spends
sneaking into your budget at the end of the month.

5. Lower risk

If stolen, it is easy to block a cred it card or mobile wallet remotely, but it's impossible
to get your cash back."In that sense, the digital option offers limited security," says
Pai. This is especially true while travelling, especially abroad, where loss of cash can
cause great inconvenience. Besides, if the futuristic cards evolve to use biometric ID
(finger prints, eye scan, etc), it can be extremely difficult to copy, making it a very
safe option.

16
6. Small gains

It may not seem like much of an advantage, but being cashless makes it easy to
ward off borrowers.Another plus is that you can pay the exact amount without
worrying about not having change or getting it back from shopkeepers.

3.2 CHALLENGES TO BE FACED

Drawbacks of digital transactions

1.Higher risk of identity theft

"The biggest fear is the risk of identity theft. Since we are culturally not attuned to
digital transactions, even well-educated people run the risk of falling into phishing
traps," says Nagpal. With the rising incidence of online fraud, the risk of hacking
will only grow. Besides, the latest move by the government to remove the two
factor authentication process for online transactions up to Rs2,000, will not help.
Irrespective of the size of transaction, the absence of this additional layer of
security will expose thousands to the risk of identity theft.

Another weak link is the inadequate redressal mechanism. "With the poor
redressal system in India, imagine what a poor rickshaw puller will do if he has
his Aadhaar ID stolen?" asks financial trainer P.V. Subramanyam."Given the
tedious process and poor grievance redressal, people will have no easy recourse
if they lose money online," adds Nagpal. There is no stringent legal process to
deal with this kind or scale of fraud. Add to it the mass identity theft from banks'
or companies' databases and it can turn into a financial nightmare.

17
2. Losing phone

Since you will be dependent on your phone for all your transactions on the move,
losing it can prove to be a double whammy. It can not only make you susceptible to
identity theft, but you could also be rendered helpless in the absence of physical
cash or any other payment option. Another drawback is that you need to keep your
phone constantly charged. If the phone dies on you, you will be stranded, particularly
if you are in the middle of an important purchase or an emergency.

3. Difficult for tech- non savvy

India has a low Internet penetration of 34.8%(2016), according to the Internet Live
Stats, and only 26.3% of all mobile phone users have a smartphone (2015), as
per Statistics figures. Besides the practical difficulty of going digital, "a bigger block
is the psychological shift. You are suddenly jumping three generations to the digital
medium," says Pai. Adds Subramanyam: "It's a problem for older people, who may
find themselves locked out of their accounts if they can't download an app or don't
have cash." The digital medium may prove a challenge for the tech unfriendly, who
will need time to adapt.

4. Overspending

While there is no denying the convenience of card or e-wallets, it could open a

spending trap. According to behavioural finance theorists, the pain of parting with
money is felt more acutely if you use physical cash. Hence, using cash instead of
cards or mobile wallet acts as a natural bulwark for people who find it difficult to
control spending. Besides, a high penetration of digital payment system is

18
contingent on the fact that the same amount of cash does not come back into
circulation. If it does, people are likely to switch back to using cash as it is a habit
that they may find difficult to break.

Few Challenges to Cashless System

• People still rely on the idea of money being ‘physically’ realisable. For some
psychological reason, ‘paper’ money is revered more than ‘plastic’ money or ‘digital’
money. Cash keeps a check on people’s spending habits.

• Anything that’s technological comes with a baggage of risks and security threats. A
very high and unbreachable degree of security would be needed as a deterrent to
hackers and cyber criminals.

• There would require some sort of digital awareness to understand the working of a
society with no cash. People who have grown up and lived through times when a
substitute for cash wasn’t even thought of might face some difficulty in adjusting to a
world without currency notes.

• All the existing cash in the world cannot be removed or deemed ‘abandoned’ at one
go. Also, when it comes to money, reassurance is the thing that matters most. For a
complete switch-over to the new monetary model, the voluminous amount of cash
presently circulating in the market would have to be converted into an equivalent
number of ‘digital’ points.

• Developing economies have an added challenge in the form of high levels of illiteracy
among the masses. For example, in India itself, there are large sections of rural
population who haven’t seen a bank in their lifetimes, let alone owning a bank
account. The only way they recognise money is through currency notes and coins.

19
Constrains For Cashless Economy

• On general day, only about 5% of payments happen electronically.

• India's literacy rate is at 74.04%. Bihar is the least literate state in India, with a
literacy of 63.82%.

• High taxation rate on finished goods, which induce manufacturers to deal in cash for
purpose of tax saving.

• Same case with service sectors.

• Lack of access to banking.

• Card swipe machines are costly as 7000Rs to 25000Rs.

• According to data available with MasterCard and Visa, some 14 lakh merchants
across India accept cards.

• Internet is not accessible for every Indian.

• Only 34.8% of total population have access to internet.(Even after digital India
campaign)

• Still 88% of Data company’s customers using 2G Network.

• 6 out of 10 transactions fails because of low speed on 2G connectivity.

• Only 41% Indians Own smartphones.

• And only 61% of total population own mobile phone.

• And Only 63% of total population having bank accounts (including Jan-Dhan
accounts)

• Many educated people also afraid to pay via online portal.

• That’s only reason COD introduced by Flipkart in India.

• Many internet users are not friendly with e-wallets and mobile banking Apps.

20
4. DEMONETIZATION

4.1Cashless economy boosted by Currency Demonetization.

• Aimed at combating corruption and black money, this move also came up with
short-term pain and chaos for the working class, small businesses and nearly
anybody who deals with cash on a daily basis.

• This move deeply impacts the working sections of society: drivers, maids,
cooks, electricians, plumbers.

• Anybody who provides services in the informal sector and depends on

monthly or bi-monthly cash payments.

• NO CASH- scenario boosted cashless payments in last two weeks.

4.2 IMPACT ON VENDORS & HAWKERS

• To know the effect of demonetization on vendors and hawkers the personal

interview of vendors and hawkers are taken and their results are as follows:

21
• After demonetization weekly sales of hawkers and vendors decreased upto
70%-80%. The main reason for decrease in their sales was shortage of cash
as instead of buying from vendors and hawkers people preferred to go to
modern retail stores and departmental stores where online payment is
acceptable so that they can make transaction without cash.

• 50% of them do not have bank accounts, and 30% of them access bank only
in their home town. Whereas only 20% of them have bank account in the city
they are living. So it was bit difficult for hawkers and vendor to change
demonetized notes of 500 and 1000 Rs. with new currency.

• Some of them have opened their bank accounts through Jan Dhan Yojana but
hardly had they deposited any of their savings in them. They prefer to keep
their savings at home so that they can use them at the time of uncertainty.
Only 20% of them deposit their savings in bank accounts.

• It was the said by Manohar lal (one of the street hawker) that before
demonetization he was able to save 300 to 350 Rs. per months but after
demonetization he was not even able to cover up his and his family basic
needs. So whether he should fulfill his basic needs or save money.

22
• Many of them having bank accounts were not able to debit money from their
bank accounts and ATMs. They have to leave their work and stand in long
queues for taking out cash from banks and ATMs.

• On this Ram Lal (a street vendor) said that whether he should go to his
workplace and earn money or he should stand in long queues and wait for his
turn to took out his savings from Atm/bank. He also said that sometime it also
happened that he is waiting in queue and as his chance came to withdraws
cash, no cash left out in Atm/bank.

• Demonetization on other side have some positive aspect too as on the other
hand some vegetable vendors and small traders have began the use of
cashless payments like PayTm, UPI, MobiKwik, freecharge, card swiping etc
as people were unable to undertake transaction through cash in the absence
of Rs 500 and Rs 1000. It has somewhere promoted PM’s cashless India
mission.

• 70% of vendors are availing online payment services to keep their business
going.

• A peddler Ramu Das said that his sales decreased after demonetizations.
People use to come with old currency notes which were not acceptable so he
started PayTm service in his store

23
5. Research objectives:
 The most important objective to study digital/Cashless India project is to know
about the digital services which India will going to adapt soon.

 To create awareness about the digital services among the young generation.

 To make students aware of how they can maintain digital wellness by taking
informed decisions and become safe, respectful and responsible users of digital
technology.

 The objective of research of the cashless India project is to come out with
knowledge of innovative ideas and practical solutions to realize Hon’ble Prime
Minister Narendra Modi’s vision of a digital India. Prime Minister Modi envisions
transforming our nation and creating opportunities for all citizens by harnessing
digital technologies.

 To empower every citizen with access to digital services, knowledge and

information.This Group will come up with policies and best practices from
around the world to make this vision of a digital India a reality.

24
6. Research Methodology:
My research methodology requires gathering relevant data from the specified
documents and compiling databases in order to analyze the material and arrive at a
more complete understanding. I hope to shed light on the questions through my
research.

6.1 Data collection:

Primary data:

 Consumer survey on cashless India.

Secondary data:

 Study reports from internet.

 Articles in newspaper and internet.

Data collection tools:

 Questionnaire survey.
 Internet.
 Newspapers.

6.2 Types of research:

 Explanatory research.
 Descriptive research.

6.3 Sampling:

 Target population- DELHI city.

 Sampling unit- Individual respondent.
 Sample size- 100 respondents only.
 Sampling method- Random sampling method.

25
7.DATA ANALYSIS AND INTERPRETATION

Q-1) Are you aware of Digital India Project?

a) Yes 70
b) No 12
c) Indifference 18

Yes No I've just heard the name

18%

12%

70%

Interpretation:

The above pie chart shows the percentage of awareness of ‘Digital India Project’.

 70 out of 100 (i.e.70% ) respondents are aware about the Digital India Project.

 12 out of 100 (i.e12% ) respondents have no idea about Digital India Project &

 18 out of 100 (i.e.18% ) respondents have just heard the name ‘Digital India
Project.’

26
Q-2) Do you think making india cashless will uplift the standard of living?

a) Yes 93
b) No 7

Yes No

7%

93%

Interpretation:
The above pie chart shows that ‘making India cashless’ will uplift the standard of
living or not?

 93 out f 100 (i.e.93%) respondents think that ‘making india cashless’ will uplift
the standard of living &

 7 out of 100 (i.e.7%) respondents think that ‘making india cashless’ will not
able to uplift the standard of living.

27
Q-3) Do you want to live in a digitalized city?

a) Yes 73
b) No 17
c) Indifference 10

Yes No Indiffrence

10%

17%

73%

Interpretation:

The above pie chart shows the percentage between the respondents who want to
live in a digitalized, who don’t want to live in a digitalized city & indifference.

 73 out of 100 (i.e.73%) respondents want to live in a digitalized city.

 17 out of 100 (i.e.17%) respondents don’t want to live in a digitalized city &

 10 out of 100 (i.e.10%) respondents are indifference.

28
Q-4) According to you, what is the most important thing to convert India digitally?

a) Literacy to rural people 20

b) Digital Education 21
c) Both 54
d) Any other 5

Literacy to Rural people Digital Education Both Any Other

5%
20%

21%
54%

Interpretation:

The above pie chart shows percentage of the most important thing to convert India
digitally

 According to 20 out of 100 (i.e.20%) respondents, literacy to rural people is

the most important thing to convert India digitally.

 According to 21 out of 100 (i.e.21) respondents, digital education is the most

important thing to convert India digitally &

 54 out of 100 (i.e.54) respondents think both the things are equally important
to convert India digityally.

 Whereas, according to 5 out of 100 (i.e.5%) respondents, equal taxation,

high investment, digital governance & IT talent are the most important thing to
change India digitally.

29
Q-5) Do you think rural people can able to adopt the digital change in our country?

a) Yes, they can 65

b) I don’t think so 35

a) Yes, they can b) I don’t think so

35%

65%

Interpretation:

The above pie chart shows that rural people can able to adopt the digital changes or
not.

 According to 65 out of 100 (i.e.65%) respondents, rural people can able to

adopt the digital changes in the country &

 35 out of 100 (i.e.35%) respondents think that rural people may not able to
adopt the digital changes easily.

30
Q-6) According to you, which sector will get developed most after digitalization in
India?

a) IT Sector 35
b) Educational Sector 18
c) Service Sector 27
d) Rural Sector 20

IT Sector Educational Sector Service Sector Rural Sector

20%
35%

27%
18%

Interpretation:
The above pie chart shows the percentage of the sectors which will get developed
most after digitalization in India.

 According to 35 out of 100 (i.e.35%) respondents, IT sector will get developed

most after digitalization in India.
 18 out of 100 (i.e.18%) respondents think Education sector will get developed
most after digitalization in India.
 27 out of 100 (i.e.27%) respondents think Service sector will get developed
most after digitalization in India.
 20 out of 100 (i.e.20%) respondents think rural sector will get developed most
after digitalization in India.

31
Q-7) After digitalization, which area will become more convenient to you as compare
to their current services?

a) Reservation 15
b) Banking 11
c) Electricity/Water facilities 17
d) Educational institutes 46
e) Any other 11

Reservation Banking Electricity/Water facilities Educational institues Any Other

11% 15%
11%

46% 17%

Interpretation:
The above pie chart shows percentage of the areas which will become more
convenient to people as compare to their current services, after digitalization.

 According to 15 out of 100 (i.e.15%) respondents, reservation will become

more convenient after digitalization.
 11 out of 100 (i.e.11%) respondents think banking will become more
convenient to them after digitalization.
 17 out of 100 (i.e.17%) respondents think electricity/water facilities will become
more convenient to them after digitalization, as compare to their current
services.
 46 out of 100 (i.e.46%) respondents think educational institutes will become
more convenient after digitalization, as compare to their current services.
 Whereas, according to 11 out of 100 (i.e.11%) respondents, all the 4 areas will
become equally convenient as compare to their current services.

32
Q-8) What is your idea of ‘Digital/cashless India.’?

a) Internet connection in every rural area 23

b) Digitalization of all government work 20
c) Free wifi at all public places 41
d) Digital Literacy 11
e) Any other 5

Internet connection in every rural area. Digitilization of all government work

Free wifi at all public places Digital Literacy
Any other
5%
11% 23%

20%
41%

Interpretation:

The above pie chart shows the percentage of respondent’s idea of ‘Digital India’.

 23 out of 100 (i.e.23%) respondent’s idea of a digital India is internet

connection in every rural area.
 20 out of 100 (i.e.20%) respondent’s idea of a digital India is digitalization of
all government work.
 41 out f 100 (i.e.41%) respondent’s idea of a digital India is free wifi at all public
places.
 11 out f 100 (i.e.11%) respondent’s idea of a digital India is digital literacy.
 Whereas, 5 out f 100 (i.e.5%) respondents’ idea of a digital india is all of the
above options.

33
Q-9) What rating would you give to this ‘Demonetization decision.’?

a) Excellent 24
b) Good 63
c) Fair 9
d) Poor 4

Excellent Good Fair Poor

4%
9% 24%

63%

Interpretation:

The above pie chart shows the rating of ‘Digital India Project.’

 24 out of 100 (i.e.24%) respondents rating for ‘Demonetization decision’ is

Excellent.

 63 out of 100 (i.e. 63%) respondents rating for ‘Demonetization decision is

Good.

 9 out of 100 (i.e.9%) respondents rating for ‘Demonetization decision is Fair.

 4 out of 100 (i.e. 4%) respondents rating for Demonetization decision is Poor.

34
Q-10) Do you think ‘Demonetisation’ will get success?

a) Agree 62
b) Disagree 8
c) Indeiffrence 30

Agree Disagree Indiffence

30%

62%
8%

Interpretation:

The above pie chart shows success of ‘Digital India Project’ according to
respondents.

 62 out of 100(i.e. 62% ) respondents agree that ‘Demonetization’ will be

successful.

 8 out of 100(i.e. 8% respondents disagree about the success of

‘Demonetization.’

 Remaining 30 out of 100(i.e. 30% respondents are indifference about the

success of ‘Demonetization”’

35
Q-11)Do you have a Jan Dhan account or a Private Bank account?

a) Yes 90
b) no 10

10%

90%

yes no

Interpretation:

The above pie chart shows that most of the people has Jan dhan account or private
bank account.

 90 out of 100 (i.e.90%) respondents has Jan dhan account or private bank
account,

 10 out of 100 (i.e.10%) respondents doesn’t have Jan dhan account or private
bank account.

36
Q-12)Do you have access to internet connection in your mobile phone?

a) yes 80
b) no 20

20%

80%

YES NO

Interpretation:

The above pie chart shows that most of the people has internet connection in their
mobile phones.

 80 out of 100 (i.e.80%) respondents has internet connection in their mobile

phones

 20 out of 100 (i.e.20%) respondents doesn’t have internet connection in their

mobile phones

37
Q-13)Of the various modes like UPI, PAYTM ,POS machine , SBI buddy etc which
one would you likely opt for?

a) UPI 10
b) PAYTM 45
c) POS 35
d) others 10

10% 10%

35%

45%

UPI PAYTM POS others

Interpretation:

The above pie chart shows preference for making payment digitally.

 10 out of 100 (i.e.10%) respondents prefer UPI for making payment digitally

 45 out of 100 (i.e. 45%) respondents prefer PAYTM for making payment
digitally
 35 out of 100 (i.e.35%) respondents prefer POS for making payment digitally

 10 out of 100 (i.e. 10%) respondents prefer others means for making payment
digitally

38
8. FINDINGS & RECOMMENDATION

8.1 Summary of finding:

1. Most of the people are aware of Digital India Project.

2. Making india cashless will going to uplift the standard of living.

3. People want to live in a city where every work is digitalized.

4. Literacy to every other rural people and providing digital education is very important
thing to convert India Digitally.

5. Rural people can able to adopt the digital changes only if they will be given proper
guidance of digital literacy & knowledge.

6. IT sector will get employment opportunity because this project requires people with
fresh IT skills. There is going to be vast change in development in service sector as
well as rural sector.

7. After digitalization, educational institutes will become more convenient as compare

to their current services.

8. Availability of free Wi-Fi at all public places is the idea of Digital India according to
most of the people.

9. According to most of the people, DEMONETIZATION has been rated ‘good.’

10. According to people, Demonezation will get great success.

11. Most of the people have Jan dhan account or a bank account

12. Most of the people have access to internet connection in their mobile phones

13. Most of the people prefer PAYTM to make payments digitally.

39
8.2 Recommendation:
 Indian government need to start providing digital literacy to every other citizen.

 To create impact of Digital India to be realized, we have to use technology to

solve problems faced by Indians and for that we need a very strong culture of
grounds-up frugal innovation in IT.

 Our recommendation to the government would be to set up PPP forums in each

of these segments to invite industry to participate in areas where they have the
domain expertise and interest.

 The government has set the stage with a strong vision and an equally strong
show of will to make it happen. What we need now is for them to focus on
setting the right policy frameworks and processes that make it easy for industry
to do business in India and encourage us to participate in India’s journey
towards becoming a digital India.

 What is needed now is an unprecedented focus and the will to make it happen
across both government and industry.

 The one area where this kind of a model is needed with a high level of urgency
is in developing the culture of innovation in India.

 The government must encourage open global standards that will enable India
to benefit from the best technology worldwide.

 The government should also focus on sustainable development and basic

facilities of rural area before providing them digital services. These two have to
go hand-in-hand.

 The numbers are mind boggling, but they can be achieved, especially as rapid
pace of innovation is increasingly making technology more favorable for mass
scale adoption, which is a must for the successful realization of Digital India.

 It is recommended that every citizen must realize that such an important and
enormous vision cannot be the government’s job alone. We have to be an equal
partner in this journey.

40
 Limitation of Research:

The present study is confined to a minimal sample size and may not reflect the opinion
or response of the entire population in general. There was only 100 respondents taken
for the survey. The results of our study are entirely confined to the responses of the
Delhi citizens and might deviate in terms of actual population as a whole
recommendation given after the study are entirely dependent on the survey and the
secondary & primary analysis done in the report.

41
 9. CONCLUSION

As the country moves towards a cashless environment after demonetisation, the

initial awe and confusion have given way to a flurry of concerns. Will the emphasis
on online transactions provide convenience and tangible benefits or just add to
stress and additional charges?

To incentivise the move towards a cashless economy, the government has come up
with a rash of discounts and freebies on digital transactions. But will these be
substantial enough and, along with other benefits, counter the higher risk of identity
theft once the currency notes are back in circulation?

The government is working at various levels to reduce the dependence on cashEven

as ordinary citizens queue up for cash and economists are busy estimating the
extent to which economic growth will be hit because of the ongoing drive to replace
high-value banknotes, there has been a lot of discussion on whether the government
can use the current situation to push India towards a cashless future. In his radio
address on Sunday, Prime Minister NarendraModi once again pitched for creating a
cashless society.

Reducing Indian economy’s dependence on cash is desirable for a variety of

reasons. India has one of the highest cash to gross domestic product ratios in the
word, and lubricating economic activity with paper has costs. According to a 2014
study by Tufts University, The Cost Of Cash In India, cash operations cost the
Reserve Bank of India (RBI) and commercial banks about Rs21,000 crore annually.
Also, a shift away from cash will make it more difficult for tax evaders to hide their
income, a substantial benefit in a country that is fiscally constrained.

To be sure, the government on its part is working at various levels to reduce the
dependence on cash. Opening bank accounts for the unbanked under the and
adoption of direct benefit transfer is part of the overall idea to reduce usage of cash
and increase transparency.

42
 RBI has also issued licences to open new-age small finance banks and payments
banks which are expected to give a push to financial inclusion and bring innovative
banking solutions. Things are also falling in place in terms of technology for India.
The recently launched Unified Payments Interface by National Payments
Corporation of India makes digital transactions as simple as sending a text message.

What else needs to be done?

 Open Bank accounts and ensure they are operationalized.

 Abolishment of government fees on credit card transactions; reduction of interchange
fee on card transactions; increase in taxes on ATM withdrawals.
 Tax rebates for consumers and for merchants who adopt electronic payments.
 Making Electronic payment infrastructure completely safe and secure so that incidents
of Cyber crimes could be minimized and people develop faith in electronic payment
system.
 Create a culture of saving and faith in financial system among the rural poor.
 The Reserve Bank of India too will have to come to terms with a few issues, from
figuring out what digital payments across borders means for its capital controls to how
the new modes of payment affect key monetary variables such as the velocity of
money.
 RBI will also have to shed some of its conservatism, part of which is because it has
often seen itself as the protector of banking interests rather than overall financial
development.
 The regulators also need to keep a sharp eye on any potential restrictive practices that
banks may indulge in to maintain their current dominance over the lucrative payments
business.

Though it will take time for moving towards a complete cashless economy, efforts
should be made to convert urban areas as cashless areas. As 70% of India’s GDP
comes from urban areas if government can convert that into cashless it will be a

43
huge gain. Therefore different trajectories need to be planned for migration to
cashless for those having bank account and for those not having.

Another big hurdle is unachieved targets for digital India. Mobile internet penetration
is crucial into deeper pockets since PoS works over mobile internet connections.
Earlier banks used to charge money on card-based transactions which has now
been pointed out as a hurdle. Also, the low literacy rates in rural areas along with
lack of internet access or even basic utilities in many places, it becomes very difficult
for people to adopt the habit for digital transactions.

Cash is definitive in nature and cash exchange carries with it the writ of the country
to even the most remote locations.

Informal sector is the largest employer in India and runs on cash primarily. It also
means that cash transactions on their own are not the generators of black wealth. It
is a highly advanced and dynamic manner of doing business refined over centuries.

Already there are reports that in the slow demonetisation process, there are people
like farmers and traders that are forced to transact with old currency. Massive
amount of currency has been sucked out of the system and lack of assured
transaction systems for rural pockets and informal sector will likely add to the woes.
On realistic estimates, it seems the government will take at least 2-3 quarters to
restore favourable liquidity in the system. Meanwhile, the informal sector remains
under threat of moving to a parallel black economy for coming weeks.

People in urban areas are largely troubled as apart from the cash crunch, the
budgets and finances of households are hit. Merchants insist on minimum amount
transactions for PoS sale or online payments. Further, they add various taxes and
levies, delivery charges etc. Articles bought online may be sold expensive with low
quality but as there is a cash crunch people are forced to buy them. Small
transactions and daily expenses are massively hit and plastic is no substitute for
planned expenditure using cash.

44
 10. BIBLIOGRAPHY

 www.livemint.com/Opinion/uzv0.html
 Cashlessindia.gov.in
 Cashless.gov.in/digital_payment_methods.html
 www.dailyo.in.business/demonetisation-digital-india
 businesstoday.in/opinion

45
 11. ANNEXURE

11.1Questionnaire for “Cashless\Digital India”

I Harsh Gupta student of ZAKIR HUSAIN DELHI COLLEGE would like to take the
survey for my project on ‘Cashless\Digital India’.

Thank you for taking the time and effort to respond to this questionnaire. Please give
your most candid and thorough response to the questions below. Rest assured that
the information you share here is confidential.

Name:

Age:

Gender:

Occupation:

If student, please mention your stream:

(Note: Please mark the suitable option according to you.)

Q-1) Are you aware of Digital India Project?

a) Yes

b) No

c) I’ve just heard the name.

Q-2) Do you think making india cashless will uplift the standard of living?

a) Yes

b) No

46
Q-3) Do you want to live in a digitalized city?

a) Yes

b) No

c) Indifference.

Q-4) According to you, what is the most important thing to convert India digitally?

a) Literacy to rural people.

b) Digital education.

c) Both.

(If any other pleases mention):

Q-5) Do you think rural people can able to adopt the digital change in our country?

a) Yes they can.

b) I don’t think so.

Q-6) According to you, which sector will get developed most after digitalization in
India?

a) IT sector.

b) Educational sector.

c) Service sector.

d) Rural sector.

Q-7) After digitalization, which area will become more convenient to you as compare
to their current services.

a) Reservation.

b) Banking.

c) Electricity/Water facilities.

d) Educational institute.

(If any other pleases mention):

47
Q-8) What is your idea of ‘Cashless\Digital India.’?

a) Internet connection in every rural area.

b) Digitalization of all government work.
c) Free Wifi at all public places.
d) Digital literacy.
(If any other please mention):

Q-9) What rating would you give to this “Demonetization decision”’?

a) Excellent.
b) Good.
c) Fair.
d) Poor.

Q-10) Do you think ‘Demonetization’ will get success?

a) Agree.
b) Disagree.
c) Indifference

Q-11) Do you have a Jan Dhan account or a Private Bank account?

a) Yes
b) No

Q-12) Do you have access to internet connection in your mobile phone?

a) Yes
b) No

Q-13)Of the various modes like UPI, PAYTM ,POS machine , SBI buddy etc which
one would you likely opt for?

a) UPI

b) PAYTM

c) POS machine

d) others

48